XML 33 R20.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Income Taxes | 12 Months Ended
--- | ---
Jun. 30, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 13 – INCOME TAXES The Company is incorporated in the State of Nevada and registered to do business in the State of California. The following is a breakdown of income before the provision for income taxes: Consolidated pre-tax income (loss) consists of the following:
|  | Years Ended June 30, |
|  | 2016 |  |  | 2015 |
US operations |  | $ | (2,527,545 | ) |  | $ | (3,621,392 | )
Foreign operations |  |  | 8,237,232 |  |  |  | (1,214,282 | )
|  | $ | 5,709,687 |  |  | $ | (4,835,674 | )
The components of the provision for income taxes are as follows:
|  | Years Ended June 30, |
|  | 2016 |  |  | 2015 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | - |
State and Local |  |  | - |  |  |  | - |
Foreign |  |  | 652,546 |  |  |  | 413,498 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | - |  |  |  | - |
State and Local |  |  | - |  |  |  | - |
Foreign |  |  | - |  |  |  | - |
Provision for income taxes |  | $ | 652,546 |  |  | $ | 413,498 |
A reconciliation of taxes computed at the statutory federal income tax rate to income tax expense (benefit) is as follows:
|  | Years Ended June 30, |  |  |  |
|  | 2016 |  |  |  |  |  | 2015 |  |  |  |
Income tax (benefit) provision at statutory rate |  | $ | 1,998,390 |  |  |  | 35.0 | % |  | $ | (1,692,486 | ) |  |  | 35.0 | %
State income (benefit) taxes, net of federal tax benefit |  |  | 328,307 |  |  |  | 5.7 | % |  |  | (278,051 | ) |  |  | 5.7 | %
Foreign earnings taxed at different rates |  |  | (2,026,031 | ) |  |  | -35.5 | % |  |  | 1,655,514 |  |  |  | -34.2 | %
Change in valuation allowance for deferred tax assets |  |  | 476,646 |  |  |  | 8.3 | % |  |  | 843,390 |  |  |  | -17.4 | %
Share of net (income) loss in equity method investee |  |  | - |  |  |  | 0.0 | % |  |  | - |  |  |  | 0.0 | %
Other |  |  | (124,766 | ) |  |  | -2.19 | % |  |  | (114,869 | ) |  |  | 2.4 | %
Provision for income taxes |  | $ | 652,546 |  |  |  | 11.4 | % |  | $ | 413,498 |  |  |  | -8.6 | %
Deferred income tax assets and liabilities as of June 30, 2016 and 2015 consist of tax effects of temporary differences related to the following:
|  | Years Ended June 30, |
|  | 2016 |  |  | 2015 |
Net operating loss carry forwards |  | $ | 14,924,107 |  |  | $ | 14,527,578 |
Other |  |  | 559,792 |  |  |  | 479,674 |
Net deferred tax assets |  |  | 15,483,899 |  |  |  | 15,007,252 |
Valuation allowance for deferred tax assets |  |  | (15,483,899 | ) |  |  | (15,007,252 | )
Net deferred tax assets |  | $ | - |  |  | $ | - |
The Company has established a full valuation allowance as management believes it is more likely than not that these assets will not be realized in the future. The valuation allowance increased by $476,647 for the year ended June 30, 2016 mainly due to adjusting the Company’s net operating loss carry forwards for current year operating losses in certain subsidiaries. At June 30, 2016, federal and state net operating loss carry forwards in the United States of America were $39,205,468 and $6,614,243, respectively. Federal net operating loss carry forwards begin to expire in 2020, while state net operating loss carry forwards are expiring each year. Due to both historical and recent changes in the capitalization structure of the Company, the utilization of net operating losses may be limited pursuant to section 382 of the Internal Revenue Code. Net operating losses related to foreign entities were $2,827,685 at June 30, 2016. As of June 30, 2016, the Company does not have any unrecognized tax benefits related to various federal and state income tax matters. The Company will recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. The Company is subject to U.S. federal income tax, as well as various state and foreign jurisdictions. The Company is currently open to audit under the statute of limitations by the federal and state jurisdictions for the years ending June 30, 2013 through 2015. The Company does not anticipate any material amount of unrecognized tax benefits within the next 12 months. The cumulative amount of undistributed earnings of foreign subsidiaries that the Company intends to permanently invest and upon which no deferred US income taxes have been provided is $29,195,810 as of June 30, 2016. The additional US income tax on unremitted foreign earnings, if repatriated, would be offset in part by foreign tax credits. The extent of this offset would depend on many factors, including the method of distribution, and specific earnings distributed. The Company determined that it is not practicable to determine unrecognized deferred tax liability associated with the unremitted earnings attributable to the foreign subsidiaries. Income from the export of computer software and its related services developed in Pakistan is exempt from tax through June 30, 2018.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration